C05 Accounting for Contract Managers: The True Love Language of Contracts!

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Breakout Session # C05

Robert E. Jones, CFCM, CCCM

Consultant & Speaker

Left Brain Professionals Inc.

Accounting for Contract Managers: The True Love Language of Contracts

Monday, November 3, 2014

3:45pm – 4:50pm

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Positive Share

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Safety Check

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Why Are You Here?

By the time accounting sees the contract, it's usually too late to make any changes!

More of an emotional presentation than a factual one.

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You ARE Here!

The intersection of contracts & accounting.

Where DCAA and DCMA meet to hold hands and sing kumbaya.

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A Love Language?

Is it a love/hate relationship? Marital bliss? Head in the sand?

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My Story

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Types of Transactions

Time

Materials

Travel

ODC

Subcontractors

Property

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A Record of Transactions

A contract is an agreement for a series of transactions.

Contracts are the vehicle for communicating the accounting (cost and price data) information and requirements.

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Understanding Transactions

Do you need to understand contracts to better understand accounting?

Do you need to understand accounting to better understand contracts?

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Six Business Systems

1. Accounting and Billing Systems (DCAA, DFARS 252.242-7006)

1. Contractor Purchasing System Administration (DCAA, DFARS 252.244-7001)

1. Cost Estimating System

(DCAA, DFARS 252.215-7002)

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Six Business Systems

4. Contractor Property Management System Administration

(DCMA, DFARS 252.245-7003)

4. Material Management and Accounting System(DCAA, DFARS 252.242-7004)

4. Earned Value Management System (DCMA, DFARS 252.234-7002)

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Small vs Large Business

Are there different requirements for different sizes of businesses?

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Accounting & Contracts Together?

Teamwork!

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Where Do We Focus?

I am a "when" not an "if" kind of guy.

Start with the end in mind and prepare for the final exam.

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Contract Types & Accounting

FFP – simplest

T&M - time collection

Cost-type - time and cost collection

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Setting Up Systems

Software tools automate postings by type and perform rate calculations.

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Resources

DCAA http://www.dcaa.mil/ Checklists

Information for Contractors

Cost Accounting Standards

DCMA http://www.dcma.mil/

FAR 31 http://www.acquisition.gov/

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Thank You!

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Contact Information

Robert E. Jones

robert@leftbrainpro.com

(513) 728-1163